I'm a privacy pragmatist, writing about the intersection of law, technology, social media and our personal information. If you have story ideas or tips, e-mail me at khill@forbes.com. PGP key here.
These days, I'm a senior online editor at Forbes. I was previously an editor at Above the Law, a legal blog, relying on the legal knowledge gained from two years working for corporate law firm Covington & Burling -- a Cliff's Notes version of law school.
In the past, I've been found slaving away as an intern in midtown Manhattan at The Week Magazine, in Hong Kong at the International Herald Tribune, and in D.C. at the Washington Examiner. I also spent a few years traveling the world managing educational programs for international journalists for the National Press Foundation.
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Why I Can't Claim My $10 From Facebook In The 'Sponsored Stories' Settlement

I was among the approximately 125,000,000 Facebook users who got an email this weekend alerting us to the settlement of a class action lawsuit against the social networking giant for putting our names and faces in “Sponsored Story” ads that were broadcast to our friends. So, because I ‘Like’ Starbucks on Facebook, my friends may have seen an ad reminding them that I like Starbucks and encouraging them to mainline a latte at the next possible opportunity. Other people wound up fronting far more embarrassing endorsements. Luckily for me, I’ve never chosen to give any particular brand of sexual lubricant the thumbs up, but I’m still entitled to up to $10 from Facebook according to the terms of the settlement.

Facebook is settling the suit for $20 million, an amount that will cover the class action lawyers’ fees –just under $8 million — with the rest being either divvied up among Facebook’s affected users OR if the demand is too great from users, divvied up among 14 non-profits that work on privacy and technology issues that purportedly help the members of the class. Facebook members will get between $5 and $10 each, unless so many people claim the money that the amount per person falls below $5. (By my estimate, that happens if around 2.5 million people sign up.) In that case, the money goes to the non-profits.

I’d argue the money does more good with organizations like the Center for Democracy and Technology, the Electronic Frontier Foundation, Stanford’s Center for Internet and Society, and Santa Clara Law School’s High Tech Law Institute — all of whom have provided sources for my stories in the past. (For disclosure’s sake, I should note that two of my current roommates work for EFF.) Thinking that about $1 million each for the non-profits was better than each member of the class getting enough to buy two lattes, my plan was to claim my award to help reach the threshold of claimants that triggers the funds going to these groups. But once I started the claim process, I realized I couldn’t do it. To submit my claim, I had to agree to the following:

4. ATTESTATIONS.

IN ORDER TO QUALIFY FOR POSSIBLE PAYMENT, YOU MUST BE ABLE TO MAKE THE DECLARATIONS BELOW, UNDER THE PENALTY OF PERJURY.

I declare the following:

1. I understand that a story about some action I took on Facebook (such as liking a page, checking in at a location, or sharing a link), along with my name and/or profile picture, may have been displayed in a Sponsored Story shown to my Facebook Friends who were authorized by me to see that action.

I’m good on that one. I did understand that, because I wrote about it when it was first announced back in January 2011. Though I was a little surprised to later learn that Facebook would put ads around simply sharing a link. As Nick Bergus can attest, that means the context can be easily lost. A link posted in outrage could wind up being something you later appear to endorse.

2. I was not aware that Facebook could be paid a fee for displaying actions such as these, along with my name and/or profile picture, to my Facebook Friends.

That’s where they get me! I did know that ‘Sponsored Stories’ were a “payday for Facebook.” I’m very curious how many of the 125 million didn’t know that Facebook was making money this way.

3. If my name and/or profile picture was displayed in a Sponsored Story, I believe I was injured by that display.

They’ve got me there too. I’ve been pretty forthright here about understanding that companies that offer us free services have to find creative ways to monetize. Back in 2009, I wrote a post entitled, “Facebook wants to use my face for ads. Okay,” where I admitted that “ I don’t care” if they use my face in ads. So… I feel like I’m in potential perjury trouble with this one. And other members might feel that way too.

“I think that the money is better given to the designated non-profits, but the wording of these declarations seems to frustrate this goal. These declarations demand a high degree of certainty from individuals, yet only general details about the conduct in question are provided,” says Samford University law professor Woodrow Hartzog. “Without actually being confronted with how your name and likeness was used, it’s difficult to say anything in this context with legal certainly. In my mind, the real problematic theme running throughout all of this is boilerplate. Far-reaching, non-negotiable terms are seemingly just as problematic in obtaining administrative clearance as they are for obtaining consent to the questionable practices at issue.”

4. I am submitting only one Claim Form, regardless of how many Facebook accounts I have.

Sorry, Facebook scammers!

5. I understand that I am releasing all claims that I have against Facebook and all other “Released Parties” as set forth in Section 5 of the Settlement Agreement (available at “www.fraleyfacebooksettlement.com/court“).

I am not in fact going to be joining the class and releasing my claims. So watch out, Facebook… though it’s not like I really mind. What Facebook could do to keep me happy, though, is to let me know when ads are being run using me and my Likes. The current solution for opting out of these is inelegant at best and the lack of any kind of ad review process is disappointing.

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Oh…and I read your blog, which meant I know these things too. I was planning not to respond because even though I knew FB was having to pony up (thanks to your blog) I also wasn’t entirely sure that the email I received was legit. For me, $10 is not worth the chance of interacting with a scammy email. But thanks to your posting of the terms, I also know that I couldn’t rightfully claim my $10 anyway.

Did anyone actually bother to read the statute this case is based off? It provides for statutory damages of $750 per person, PER INSTANCE. Facebook is going to give you $10 for ALL of the times they made money off of you. If they were required to give all 125,000,000 class members $750 for each time they used their image, there would no longer be a facebook.

Unlike you, however, I suspect most Facebook claimants wil not read the boilerplate attestations, just like they didn’t read the Facebook terms of use where they arguably gave their consent to the use of their name and image in the Sponsored Stories program. And, even if they do read the attestations, most are not as well informed as you about the program and can truthfully make the attestations. Consequently, I am hopeful that 2.5 million claims will be submitted since I share your belief that several million dollars to privacy advocacy groups will be of far greater benefit to an individual consumer than $10.00.

One slight clarification to your post. You do not need to “join” the class. You automatically became a member of the class when the lawsuit was “certified” as an appropriate class action by the court. Unless you formally opt out of the class, you lose your right to take further legal action against Facebook whether you submit a claim or not and whether you accept any payment or not. This is one of the major benefits to Facebook from this settlement, i.e. all members of the class (including you!) are barred from further legal action unless they have been excluded from the class. This binding preclusive effect on all members of the class is one reason why a judge must approve the fairness of any class action settlement.

Since you will soon lose your ability to sue Facebook over the Sponsored Stories program I guess you will just have to keep Facebook on the up and up by continuing to write about the company’s privacy missteps…something you are certainly adept at doing.

I think the idea of splitting the money between the non-profits is a great idea. My question is how many people can really had no clue that Facebook was making money off Sponsored Stories? It may be generational, but to me it seemed obvious that Facebook would be making money off these actions. I wonder just how many people will “pretend” that they have no clue to claim their $10.

Kashmir interesting article, just wondering do you know how $20 million became the magical number, for the suit?

Thanks, also have you read this article, I would like your opinion on it, I believe that she was wrongly fired. http://news.yahoo.com/blogs/sideshow/applebees-waitress-fired-pastor-receipt-193820748.html